Bonaqua Water (HK, TW). New Flavours vitaminwater. Mega-c (PRC). Vital (PRC) ew products, includi. Hi-C. Caramel Pudding. Flavoured Soya Milk (HK).
665 KB – 28 Pages
PAGE – 2 ============
SWIRE BEVERAGES1ContentsManaging Director™s Message 2Sustainability Milestones 32010 Performance Highlights 3Business Overview and Governance 3Delivering Refreshment 5Commitments, Progress and Future Goals 5Consumer Health Œ Beverage Benefits 7 Consumer Health Œ Active Healthy Living 9Water Stewardship 11Energy Management & Climate Protection 13 Sustainable Packaging 17Workplace 19Community Engagement 21Achievements & Awards 23Global Reporting Initiative 24Assurance Statement 25We hope to hear from you 25Live Positively StatementThe Coca-Cola Commitment to SustainabilityLIVE POSITIVELY is our commitment to making a positive difference in the world by redesigning the way we work and live so that sustainability is part of everything we do. Forever .ENERGY AND CLIMATE Growing the business, but not the carbon in our manufacturing operations.Improving energy efficiency and reducing emissions of greenhouse gases in cold drink equipment.SUSTAINABLE PACKING Creating a world in which our packaging is no longer seen as waste, but as a valuable resource for future use. WATER STEWARDSHIP Safely returning to nature the amount of water equivalent to what we use in all of our beverages and their production. Environment COMMUNITYCommitting to the needs of our communities, with wide ranging programs in every community where we do business. CommunitiesBEVERAGE BENEFITSQuenching every thirst and need, providing and tailoring beverages for every lifestyle, life stage, and life occasion based on individual needs.Delivering quality you can trust all the time.ACTIVE HEALTHY LIVINGHelping to encourage active living and enhance health.Raising the standards of physical fitness globally through encouragement, sponsorship, and grass-roots programs. MarketplaceWORKPLACEFostering open environments, as diverse as the markets we serve, where workplace rights are respected and people are inpired to create superior results and make a positive difference. Workplace
PAGE – 3 ============
2010 SUSTAINABLE DEVELOPMENT REPORT IN ESSENCE 2Last year I reported on the adoption of the Live Positively platform at Swire Beverages to capture our on-going commitments to making our business more sustainable in the marketplace where we compete, the communities where we live, the workplace where we collaborate and in the global environment where we are committed to make a positive difference. During 2010, we embarked upon an extensive communications project with our staff to broadly communicate the seven pillars of Live Positively Œ the sustainability platform that we share with the Coca-Cola system. These pillars will provide the framework for this year™s report, which will go into details about the metrics by which we track our progress and measure our impact in these areas. The Live Positively commitments require a strong focus on continuous improvement in our production, distribution and packaging of an ever-broadening portfolio of beverages. To identify and rapidly adopt best practices for achieving this continuous improvement requires the support of our 18,000 staff in Hong Kong, Mainland China, Taiwan and the USA Œ hence the heightened emphasis on staff communications in 2010. Our staff can be our best ambassadors in promoting the benefits of our beverages, encouraging active healthy lifestyles amongst ourselves and within our communities, the efficient usage of natural resources in the manufacturing of our beverages and the adoption of safe working practices Œ to help look after a colleague when one may forget to look after himself. We were very proud to open our most environmental friendly plant in Luohe, Henan province of Mainland China in late 2010. Luohe sets a new benchmark for our environmental standards but we are planning to lift this benchmark for our next plant opening!During 2010, we were the first bottler in Mainland China to adopt the government-sanctioned use of 10% recycled PET (rPET). In the USA, we launched the PlantBottleŽ, which is made up to 30% plant-based materials, for several of our major brands. Significant advances were made in lightweighting PET bottles with a ground-breaking fiTwistfl bottle launched in Hong Kong, Mainland China and Taiwan supported by extensive consumer communications to explain the benefits of the fiTwistfl on reducing the volume of waste entering landfills and reduction of the product™s carbon footprint by 35% compared with the former bottle. The impact of the various initiatives is captured in the Performance Highlights Œ clearly we have room to improve and we are conscious that our safety performance in particular requires heightened attention. We are making progress but there is no room for complacency and the visibility of our Live Positively commitments will ensure that we remain focused on continuous improvement. Challenges AheadRoad safety in and outside our plants remains a top priority with a number of our plants reporting high road accident rates, we also regrettably had one fatality in Xiamen in 2010. As such, we are taking a fresh look at managing safety and will be rolling out a Safety Roadmap after further study of root causes and gap analyses, targeting areas of greatest concern. The introduction of the PlantBottleŽ was exciting and a true innovation, though the costs associated with this material make it a lot more expensive than traditional PET. Additionally, closed-loop rPET in Mainland China is far from reaching critical mass and has limited points of production. Both these attempts to reduce the carbon impact of our PET packaging will continue to receive attention. We would also like to install more CO ² coolers however they are more expensive than other models and create new challenges for servicing across our territories so we have not been able to scale up their installation in a manner that is economically viable at the moment. Feedback on how we are seen to be performing is, as always, keenly sought!Geoff Cundle Managing Director Swire Beverages Limited Managing Director™s Message
PAGE – 4 ============
SWIRE BEVERAGES3population served in franchise territories450 million profit in 2010HK$699 millionsales volume923 millionunit cases(Each unit case is equivalent to 24 bottles of 8oz beverages)2010 Performance HighlightsSustainability Milestones† Created Environment Committee led by senior executives and chaired by the Managing Director to give strategic direction and guidance to bottlers on environmental efficiency projects. † Created CSR policy and committee led by senior executives and chaired by the Managing Director to give strategic direction and guidance on community partnerships and investments. Same governance structure established at each operating unit.† All operating units set aside 0.5% of profit after tax or HK$200,000 (whichever is the higher) as CSR fund for community programmes. † Published first Sustainable Seafood Consumption Policy. † Swire Beverages™ Mainland operations was the first Coca-Cola bottler globally to introduce 1881 Short Neck PET bottle design. The project won the 2008 Global R&I Innovation award (Productivity category) from The Coca-Cola Company. † First in Mainland China™s Coca-Cola system to use fast reheat absorption PET resin in bottle blowing process reducing 13% of energy consumption in bottle blowing/making.† Launched safe driving programmes and incentives in Mainland China.† Launched fiFly Greener Carbon Offsetting Schemefl for corporate travel.† Made first purchases of Hybrid cars for USA operations.† Became the first in Mainland China to overcome regulatory issues in using 10% bottle grade recycled PET resin, supplied by first closed-loop PET recycling supplier Œ Incom.† Launched Mainland China 2020 Vision defining key focus areas for sustainable growth. † Established Sustainability function which takes a holistic approach in engaging staff for integrating sustainability at work and life. Consolidated Environment, Health, Safety and CSR Committees under Sustainability at Head Office. † Opening of Luohe plant in Henan with over 49 environmental features built in. † Co-created first delivery truck in Hong Kong utilising solar energy to run its air-conditioning unit. † First in Hong Kong and Mainland China to introduce new lightweight water bottle reducing use of resin for bottles and closures by 35% and 66% respectively. Overall bottle weight reduced from 18g to 11.8g. † Introduced sustainable food consumption policy to minimise food wastage.† First time attained GRI standard at C+ for 2009 Sustainable Development Report.20072010200620082009SWIRE BEVERAGES3Business OverviewSwire Beverages is the principal holding company of Swire Pacific™s Beverage Division and has the right to manufacture, market and distribute The Coca-Cola Company™s products in Hong Kong, seven provinces in Mainland China, Taiwan and territories across 11 states in Western USA. Our partnership with Coca-Cola began in 1965 and has grown to include 16 bottling facilities with over two million square feet of production premises. Swire Beverages covers a total population of 440 million through 18,000 employees, serving over 800,000 customers who sell our refreshing portfolio of beverages to consumers. By producing beverages locally, our
PAGE – 5 ============
2010 SUSTAINABLE DEVELOPMENT REPORT IN ESSENCE 4tonnes of recycled PET (rPET) used728tonnes of recyclable PlantBottleTM resin used for Dasani Wate r1,374tonnestonnes # of beneficiaries in community programmes in 2010300,000community investment total in 2010HK$8 million water use ratiolitre per litreamount of water treated for reuse260 millionlitres per year1.81improvement from 200437%energy use ratioimprovement from 2004** Swire Beverages uses 2004 as our baseline year, this is when the Coca-Cola system set clear targets for reducing water and energy consumption per unit of beverage.38%MJ per litre0.3118,000total number of employees34new products (flavours and packaging sizes)business brings economic benefits to the local community in the form of investments, job opportunities and taxes, while amplifying this positive influence through the partnerships with customers and suppliers for mutual business growth and supporting local development.As the 5th largest bottler in the Coca-Cola system, our company offers a wide range of ready-to-drink beverages and we will continue to expand the breadth and depth of our beverage categories to meet the changing needs of our consumers in the territories we serve.Governance Swire Beverages™ Head Office (SBHO) in Hong Kong provides strategic direction and guidance for operating units on all matters relating to sustainability including environmental stewardship, health and safety, workplace conditions and community/civil society investment and partnerships. The Sustainability committee oversees sustainable development including initiatives under the Live Positively platform. The Managing Director chairs the committee, with key senior executives acting as members. With the launch of Live Positively in 2010, each plant has established a Live Positively committee to plan and implement projects under the seven areas of Live Positively.
PAGE – 6 ============
SWIRE BEVERAGES5Delivering RefreshmentCommitments, Progress and Future GoalsArea Commitment Progress in 2010 Future Goals ConsumerHealthBeverage BenefitsP.7 Provide quality choices to meet changing consumer beverage needs, enabling them to make well informed choices. Inspire and engage consumers to lead active healthy living.Safely return water used in the production of our beverages back to the community. † Reduce Water Use Ratio*. † Recycle: Increase use of recycled water for plants™ and community use.† Replenish: Promote water source protection. * Water Use Ratio (WUR) is the KPI used by Swire Beverages to measure water use in bottling plants, expressed in litres of water used per litre of beverage produced. † Introduced 34 new products including new flavours, portion sizes and packaging types.† Introduced front of packaging (FOP) labelling showing calorie and nutrient content.† Promoted consumer health and well-being through community education and sports programs, engaged about 32,000 participants. † Achieved 100% wastewater treatment in all plants with quality meeting or exceeding government standards. † Water Use Ratio improved 37% since 2004. † Treated wastewater reused in all plants, with two of them supplying local government for city use.† Engaged youth and community in awareness and education programs for water conservation. † Continue to expand beverage range and package choices.† All plants in Hong Kong, Mainland China and Taiwan are ISO 9001 and ISO 14001 certified.† Continue to support and sponsor Active Healthy Living activities in our communities.† Commission water footprint review for life cycle of one product to identify areas of opportunity. † Increase reuse of treated wastewater. † First plant to achieve 100% reuse of treated water in 2011 and more plants to follow. † Source Vulnerability Assessment and Protection Plan to be completed by 2012. † Engage community in Watershed Protection for major rivers in our territories.Active Healthy LivingP.9 Concentrate PlantsPotentialEnvironmentalImpacts:Ingredients and Packaging e.g., water, sweeteners, lemon oil, vanilla flavour and CO2Bottling PlantsCustomersCoolersConsumersTransport WarehousesAirWasteRecyclingWaterP.11 Water Stewardship
PAGE – 8 ============
SWIRE BEVERAGES7SWISWSWSWISWISWIWRRRREE RRERRBEVBEVBEVEVERAERAERAERAGESGESGESGES77As the market leader in the beverage industry, we go beyond ful˚ lling refreshment and hydration needs by actively enhancing our high quality portfolio of beverages. Providing information that enables consumers to make informed choices for their drinking occasions and well-being aspirations. Consumer Health Œ Beverage Bene˚ ts With our on-going efforts in offering consumers a broader portfolio of still beverages including a variety of juice drinks, western, oriental and herbal teas, dairy drinks and bottled water; still beverages now made up 40% of our total business in 2010, versus 10% of our total business in 2000. For example, Minute Maid Juice Drink with Pulp, has become the number one juice brand in Mainland China since its launch in 2004. The brand was later launched in Hong Kong and Taiwan and is contributing to 18.6% of our beverage mix with eight popular juice flavours. In 2009, the brand introduced a new ready-to-drink dairy line with four fruit flavours.Product Volume Changes by Category (2000 vs. 2010) REFRESHING CHOICES FOR CHANGING OCCASIONSSWIRE BEVERAGES7 90.4% Sparkling Beverages 60.1% 0.6% Juices / Juice Drinks 18.6% 5% Ready-to-Drink Coffees & Teas 4.8% 3.4% Water 13.6% 0.6% Other (Dairy/Soy/Energy/Vitamin Water) 2.9% 20102000322 millionunit cases923 millionunit casesNo. of flavours: 236
PAGE – 9 ============
2010 SUSTAINABLE DEVELOPMENT REPORT IN ESSENCE 82010 SUSTAINABLE DEVEL OPMENT REPORT IN E SSENCE 8Making Informed Choices To enable our consumers to make choices about what and how much to drink, we print easy-to-read energy information on the front of our package in Hong Kong, Mainland China and the USA. The label clearly states the calorie content of our products in relation to the recommended daily intake. More High Quality Beverage Choices In 2010, we added 34 new products, including 25 new flavours, nine new serving sizes and packaging innovations such as lightweighting.s such as Light Weight Bottle Ice Dew Water (PRC) Bonaqua Water (HK, TW) New FlavoursvitaminwaterMega-c (PRC)Vital (PRC) ew products , includiHi-CCaramel Pudding Flavoured Soya Milk (HK) Sweet Corn Soya Milk (HK)25 new flavours, ninMinute MaidTropical (TW) 10V (PRC)new serving sizes aNesteaYinhao Jasmine Green Tea (HK) Honey Pear (HK)nd packaging innoSchweppes+C (HK)Quality Standards To maintain high quality standards, we follow The Coca-Cola Operating Requirements (KORE) which sets clear standards and governs the Quality, Environmental and Occupational Safety and Health System as it applies to other bottlers in the Coca-Cola system worldwide.Swire Beverages pays great attention to and continuously implements the standards set under The Coca-Cola Management System (TCCMS) and conducts regular internal and external audits to ensure compliance with TCCMS requirements. New front of pack labelling in Hong Kong2010 SUSTAINABLE DEVELOPMENT ESSENCE REPORT 8 Ref:PRC = Mainland China HK = Hong Kong TW = Taiwan
PAGE – 10 ============
SWIRE BEVERAGES9fiLet™s Balance Diet and Exercisefl No. of participants in Hangzhou Community walks about 2.4 million calories burnt over 5,500Consumer Health Œ Active Healthy LivingA REFRESHING STEP-UPCoca-Cola Live Positively Community Walks Hangzhou, Mainland China Œ Seizing the opportunity to inspire more people to become active in their daily lives, our Hangzhou bottler initiated a local partnership with the Hangzhou Sports Bureau and organised a series of four community walks which combined the pleasures of walking and sight-seeing. Each event comprised of a 1-2 hour walk around a landmark famed for its natural beauty and historical importance. Over 5,500 people, including staff from the Hangzhou bottler, participated in the series of events. We estimate the walkers have burnt about 2.4 million calories (432 calories/person at 288 calories/hour) over the series of walks. Zhao Rongfu Bureau Chief , Hangzhou Sports Bureau fiWith modern life, we don™t exercise enough and it™s one of the leading factors directly and indirectly causing bad health. With walking, not only do organs receive nutrients, but waste and toxins are removed, enhancing metabolism and balancing our bodies. The Community Walk is unique in that it combines walking with sightseeing, giving us an opportunity to appreciate the scenic beauty of the city.fl e of alth. waste that it nity Beijing-Hangzhou Grand CanalNight Walk at West Lake Acknowledging our consumer™s aspirations of physical well-being, we will continue to encourage healthy living by sponsoring sports programs and promote the importance of balancing calorie intake with adequate exercise. people participated in our sponsored events~ 32,000 Xixi Wetlands Qiantang RiverQiQiatntangRiRier1324
PAGE – 11 ============
2010 SUSTAINABLE DEVELOPMENT REPORT IN ESSENCE 10Promoting Active Living at School Let™s Balance Diet and Exercise Hong Kong Œ We supported Kitchee Football Team FCBESCOLA Hong Kong by inviting staff to be assistant coaches and providing product sponsorship. In 2010, 750 young soccer enthusiasts learnt football skills and positive attitudes from professional players. USA Œ Over 800 young players in 63 teams participated in the Northern Arizona Youth Soccer League sponsored by SCCUSA. Hangzhou, Mainland China Œ Coinciding with the World Cup in South Africa, we hosted community football tournaments from April to May. About 300 teams including 1,800 players competed and were cheered by over 10,000 spectators.Mainland China Œ To educate a new generation of youth to understand balancing diet and exercise, our Guangzhou, Hangzhou and Zhengzhou bottlers partnered with the Ministry of Health as well as nutrition experts and conducted three conferences in universities and engaged 6,500 students. Happy Playtime Œ Initiative helps Chinese children improve their knowledge about health through games and exercises. In Swire territories, nearly 150 schools with approximately 140,000 students participated in Happy Playtime programmes. Keeping Steps With Youth Soccer Hangzhou school children engaged in Happy Playtime activities
665 KB – 28 Pages